LEND-LEASE IS NOT A ONE-WAY STREET
Britain provides the U. S. Armed Forces sta-
tioned in Britain with 20 per cent, by weight, of
their food.
Almost 90 per cent of the medical supplies of
the U. S. Army in Britain are supplied by the
British.
Britain is spending over six hundred million
dollars on constructing airfields, camps, hospitals
and other buildings for the U. S. Armed Forces.
Britain has supplied over 80 per cent of the
current stocks of U. S. Army Post Exchanges in
Britain.
Britain is currently devoting 10 per cent of her
entire war expenditure to Mutual Aid. In relation
to her national income, she is giving to the United
States not much less than the United States, in
relation to its national income, is giving to Britain
in the form of Lend-Lease.
Between June 1, 1942, and April 1, 1943, Brit-
ain provided the U. S. Armed Forces in Britain
with a quantity of supplies which would have
taken more than 1.360,000 ship tons if brought
from the United States. In addition, over 2,000,000
tons of construction materials were provided.

THE LATEST FIGURES OF BRITISH AID to the United States
!how a total expenditure of more than one and a half billion dollars by the
end of 1943. This total is based on actual figures of expenditure up to
September 30, 1943, together with estimates for the last quarter of that
year. It includes goods and services transferred overseas (estimated at
between 160 and 200 million dollars) but does not include raw materials.
The detailed figures (converted at the rate of $4.03 to the pound) are
as follows:
Goods and services transferred in Britain $ 535,990,000
Shipping services.. 282,100.000
Airports, barracks, hospitals and other construction .... 548,080,000
Goods and services transferred outside Britain, more than 160000,000
Total 1,526.170,000

A. INTRODUCTION
Mutual Aid is a vast system for the pooling of the resources of all
the United Nations, whereby each nation contributes on Lend-Lease
terms to the common pool.
Starting in 1941, Lend-Lease gave help to Britain from the vast
industrial resources of the United States. at a time when Britain was
standing almost alone against the Axis. While the United States was
still at peace, the flow was overwhelmingly in one direction. But
after Pearl Harbor, the nature of Lend-Lease slowly changed. Other
nations, including Britain, instituted their own forms of Lend-Lease,
and began supplying goods and services to one another. In this way,
Lend-Lease developed into Mutual Aid-the pooling of the resources
of all the United Nations.
The British people, well aware of the part played by American
Lend-Lease in the hard days of 1941, have long been anxious to know
what Lend-Lease aid Britain in her turn is giving to the United
States and other members of the United Nations. On November 11.
1943, the British Government, thinking it "proper to satisfy the
public interest in the subject," published a "Report on Mutual Aid"',
giving some facts and figures on Britain's aid to her Allies up to the
end of June, 1943. Since the publication of this Report, British Infor-
mation Services have received many requests for information on
Britain's contribution to the common pool. This pamphlet attempts
to present in a convenient form some of the facts and figures available.

B. THE DEVELOPMENT OF BRITISH AID TO THE
UNITED STATES
Before Pearl Harbor
Long before Pearl Harbor, Britain was sending freely to the
United States many special items of supply of which American war
industries stood in need. Britain even shipped to the United States
three complete gun-barrel factories.
But the most important form of aid given to the United States it
the pre-Pearl Harbor days was the steady flow of information gath-
ered from research and practice and from actual battle experience.
Much of this information consisted of closely guarded secrets. Much
of it, such as Britain's advanced development of radiolocation
("radar"), was of the greatest military importance. The recently-
disclosed invention of the jet-propelled fighter plane is another im-
portant example. The jet plane was invented by an RAF officer, and
the first successful flight was made in Britain in May, 1941. In July,
1941, some months before Pearl Harbor, the secret plans were turned
over to the USAAF. Later a sample engine was sent to the United
States, and since then these planes have been manufactured in both
the United States and Britain.

'Copies available free on request from British Information Services.

placed by Britain before Lend-Lease stimulated American defense
industries and helped to make possible the enormous production
achievements of 1942-3. This is not Mutual Aid, but it is an example
of the way Britain's fight against the Nazis and her full mobilization
of all her resources for this purpose helped the United States
strengthen her own defenses.

After Pearl Harbor
Immediately after the United States entered the war, British aid
began to increase rapidly in volume. One item was the aid given by
Britain to the defense of American cities, plants and military instal-
lations. Over 3.000 British barrage balloons, of the same type as
those used to defend British cities during the Blitz, were shipped to
defend American cities and war plants. British anti-aircraft guns
were sent to defend the Panama Canal and to guard American cities
against possible raids. In the defense of tile Atlantic Coast and the
Caribbean, six British destroyers. 12 corvettes and 24 anti-submarine
trawlers of the latest type-all British manned-operated under U. S.
Navy control, and in addition a number of corvettes were loaned to
the U. S. Navy for its own use. In the Caribbean a squadron of the
RAF Coastal Command operated a ceaseless patrol against subma-
rines.

Mutual Aid Gels Going
The pooling of resources on Lend-Lease terms eaves shipping and W
minimizes the need of each nation for the currency of other nations.
At the time the Lend-Lease Act was passed, shortage of dollars was
seriously threatening to cut off Britain's supply of munitions from the
United States. Shipping has been a bottleneck throughout the war.
One obvious way of saving shipping is always to use the most acces-
sible source of supplies.
British aid to the United States began to flow on a really large
scale when American troops landed in Britain and in British terri-
tonr in 1942. Following the general strategy of Mutual Aid, these
soldiers were largely supplied from local British sources.' For Britons
it was an opportunity to show their practical recognition of American
help.

Aid from the British Commonwealth'
The cost of aid given to the United States in the British Colonies
is met by Britain, as well as that given in Britain itself. But Britain
is, of course, not responsible for aid given to the United States by
the British Dominions or India. Australia, New Zealand, South
Africa and India have given aid to the United States out of their own
resources, while Canada, which receives no Lend-Lease aid from the
United States, provided Britain with aid amounting to one billion
dollars in 1942. and in 1943 gave aid to the United Nations amounting
to a further billion dollars.
& S.e the e::change of notes of S-ptcnibcr ., 1942, reprinted in the Appendix.
SFurth.er details on aid riven to the United Stat-3s bhy Australia, New Zealand
and India will be found in President Roosvelt'. Twelfhi Report to Congress on
Lend-Lease Operatio'.a, November 11, 1943.

..

racS.., camps, nol.ses. noieci, ounces, nospiiais, alrnelus, nangars alna
workshops throughout Britain. This construction program is costing
Britain over $601) millions, and, at its peak, two-thirds of the civil and
military labor available for military works and services in the United
Kingdom were working for the American Forces. The construction
materials amounted to approximately 2,180,000 tons. About 20 mil-
lion square feet of storage space have been handed over for the use
of the U. S. Army.
One important part of this construction program has been the
building of a vast network of airfields, camps and depots to accommo-
date the great air fleets which are now smashing at German war
centers. The total cost of these airfields, camps and depots including
those built for the RAF and for the air forces of other members of
the United Nations as well as those built for the USAAF) will amount
to about $2,500 millions, of which about $472 millions is being spent
on airfields, camps and depots for the USAAF. The total cost to the
United States will be about $40 millions-all the remainder being
provided by Britain.

Transport
British aid not only meets the requirements of the U. S. Forces
after they have arrived, but also helps get them to their destinations.
British ships-including such giants as the Queen Mury and the
Queen Elizabeth-have helped take them over. Troopships are con-
voyed a large part of the way by the British Navy. American troops
proceeding from Britain to overseas theaters of war are often carried
in British ships. United States warships and merchant ships in
British ports all over the world are provided with free fuel, services,
supplies and repairs.
The cost of transporting members of the U. S. Forces in Britain
and the British Colonies is met by Britain. More than 1.200 complete
aircraft of the USAAF have been moved from the ports to assembly
points all over Britain. Hundreds of thousands of tons of stores have
been shipped to camps and depots. Nor was this aid confined to
existing facilities. To ensure that occupation of the depots handed
over to the Americans was not delayed by lack of adequate railroad
facilities, half the strength of the transportation and construct.
troops of the Royal Engineers was continuously employed on railroad.
construction for a considerable period of time, together with a large
number of civilians.
When the U. S. Forces began to arrive. 3,000 vehicles were im-
mediately provided for their use until the full complement of their
own motor transport should arrive.

Bicycles for Airmen
Members of the USAAF found that dispersal of hangars and bar-
racks, for safety against bombings, meant that the aircrews had con-
siderable distances to walk. So they asked for bicycles. Bicycles are

except on nigniy important business, out oUy Te CI en1 JUI ne, luq.j,
over 21,000 bicycles had been delivered. and contracts have been placed
for a further 23.000.

Food
British aid provides the American Forces in Britain with 20%, by
weight. of their fi.,od supply, including all their potatoes, bread, flour
and fresh vegetables. Cereals, chocolate, candies, cookies, jams,
pickles and spaghetti are other foods provided. It is estimated that
in 1943 Britain provided American troops with about 284,000,000
pounds of food. including:
59,00,i000 pounds of potatoes
481.00).000 pounds of fresh vegetables
62,50i,.00(0 pounds of flour
35.,O)0.0(0 pounds of sugar
2.S.)10.011) pounds of fruit
1,100.00o1 pounds of jam
4,900.0011 pounds of dry cereals
201.900.000 pounds of cocoa and coffee
The premises of a Cooperative Society .were requisitioned and
handed over to the U. S. Forces for use as a bakery, with new equip-
ment installed to produce 50,)(000 poundC of bread a day, and modern
mobile bakeries were provided for troops in the field.
Britain also renders important services in connection with perish-
able foods, such as meats, butter and bacon. which the American
Forces import from the United States. These items are given the cold
storage or other -pecial treatment they require. Britain undertakes
all transport, handling, storage and delivery, from the time these
foods are landed at the ports until they are delivered to the various
U. S. Army depots.

British Workers Employed by the U. S. Forces
There are about 10,000 British civilians employed by the U. S.
Forces in Britain. \whose wages. amounting to about $12,000,000 a
year, are paid by Britain.

Military Equipment
Most of the arms used by the U. S. Forces are \American-made,
but any British-produced arms for which they ask are supplied free,
and Britain has al-o supplied large quantities of miscellaneous war
supplies. The list of military equipment transferred includes several
hundred Spitfire planes, 32.000i bombs ranging from incendiaries to
"tlock-busters," 7.000 sets of armor plate for heavy bombers. 1.000,000
anti-tank mine-, 710,0001 six-inch -hells., many millions of rounds of
small arms a munition, electric batteries at the rate of 500,000 a
month, 500,000 hand grenades. -13.0lI I gasoline tanks, alboLt 5,000
collapsible rubber diinghies and about 1.30.i parachutes. A very large
quantity oif anti-stubmarine boom defense gear-booms, nets and equip-
ment, the result of many years of practical trial and research-has
been supplied by Britain, together with the vessels necessary for their
operation. Britain has supplied all the maps used by the United StateS
6

Army and Army Air Force in or based on Britain, and supplies of
maps to the U. S. Forces in the Mediterranean area have also been
mainly from British sources. Britain also supplies all USAAF oxygen,
and the cylinders in which it is stored, which number nearly 2.000.
When certain United States tighter gurnsigihts proved less effective
than the sights employed by the British lighters, the RAFqriovided
a substantial number of British-type sights for immediate installation.
Britain ha- supplied specially heated x inter flying clothing to protect
American bomber crews from the intense ,cold suffered at high alti-
tudes and has provided facilities for the devehopme nt and production
of a new type of protective brd.y a-rmor, designed by American medical
authorities. She has agreed to supply 3,500,000 anti-tank mines, and
hundreds of miles of cable and hundreds of tons of barbed wire have
already been supplied.

"Ameri-cans"
Britain has built a plant which will produce millions of returnable
five-gallon gasoline containers annually for the U. S. Forces in the
European Theater of Operations. This plant makes "ameri-cans" of
a slightly different design from the containers made for the British
Forces (known as "jerricans"). The ameri-cans are designed so that
they may easily be carried by hand or small vehicle, and are made to
withstand extreme climatic conditions. They can be thrown from a
moving lorry or dropped from a height of over 20 feet on to concrete
without suffering damage. The production of ameri-c.ans augments
the allotment of almost 50% of the total British gasoline can produc-
tion which is already going to the U. S. Forces.

Medical Supplies and Services
Almost 90%' of the medical supplies of the United States Army
in Britain are provided as British aid. The supplies include surgical
appliances, medicinal gases, culture media and calf lymph. In addi-
tion. hospitals, some specially built and others turned over as they
stood, have been provided, together with ambulance trains. Accom-
modation in British military and civilian hospitals has been made
available as and when required. A center for the rehabilitation of
wounded American soldiers-the only one of its kind for the entire
American Army in Britain-has been built and equipped. Basing its
work on methods developed by the British Army and the RAF since the
beginning of the war, the center uses special cquipment-all sup-
plied by Britain-for remedial exercises, physiotherapy and massage.
British instructors have been assigned to the center, and American
instructors are now being trained at British Army Physical Train-
ing Schools.
Information on hygiene training, trials and experiments has been
placed at the disposal of the United States Army. and hygiene courses
and demonstrations for American soldiers have been arranged at the
British Army's School of Hygiene.

Clothing
Britain is supplying to the U. S. Forces large quantities of more
than 5,000 different items of clothing and general stores. The cloth-
ing supplied includes nearly all items of officers' uniforms, certain

V

items of enlisted men's uniforms, officers' footwear. and socks, gloves
and woolen underwear for both officers and enlisted men.
Laundry and hoot repair services are being provided, and a British
Mobile Shoe Repair Unit has been lent to the U. S. Quartermaster
Corps to do repairs and instruct American troops. Three depots for
the repair of clothing have been handed over.

Supplies for Post Exchanges
Britain has supplied over SO- of the current stocks of American
Army Post Exchanges in Britain. The products involved include shav-
ing cream, razor blades, toothpaste, IbrushIs, hair tonic, handkerchiefs,
lighter fluid, matches, mirrors, tobacco pouches, pipe cleaners, nail
files, playing cards, flashlights and many other things. Britain had
100,000 pinochle cards specially printed to comply with a request
from the U. S. Army. Pinochle is not a British game.

Entertainments
British bands and theatrical parties are regularly routed to Ameri-
can camps in Britain.
Entertainment amenities supplied range from packets of phono-
graph needles to 28-piece brass bands, and include theatrical equip-
ment. musical instruments, many thousands of phonograph records,
phonograph turntables and amplifier equipment. and sheet music.
Members of the U. S. Forces have been given more than 30,500 free
tickets for London theaters.

Hostels and Leave Centers
Britain has provided 46 American Red Cross Hostels and Leave
Centers in London, some being requisitioned hotels, and others con-
sisting of groups of several houses, and well over 100 in other parts
of Britain. These hostels and centers are handed over fully furnished,
including bedding, with showers, radios and refrigerators, and are
maintained at British expense.

Clubmobiles and Doughnuts
Britain has converted numbers of large buses into "clubmobiles."
specially fitted as traveling canteens for the use of American units in
remote districts. They are fitted with special apparatus for making
doughnuts-which are now unobtainable by the British public.

The Largest Telephone Hookup in Britain
All services of the British Post Office required by the U. S. Forces
are supplied free. These include telephone and teletype services
and telegrams and cables to all parts of the world. British aid has
provided the largest telephone hookup in Britain for the United States
Army's European Theater of Operations headquarters. connecting
with every Army, Navy and Air Force base, both British and Ameri-
can, in the country. The switchboard has 52 panels, and the enormous
traffic on its lines is handled by 100 British girls. It is housed in a
bomb-proof basement, and is larger than the switchboards of the
British War Office and Admiralty. Thousands of miles and hundreds
of thousands of dollars' worth of cables were used in its construction.

are inserted into the envelopes by hand. Other machines stick down
the envelope flap and print the postmarks at the rate of 10,000 letters
an hour. When it has gone through this process, the mail is packed
in U. S. Army mail bags and taken over by the U. S. Army Post Office
for sorting and dispatch.
Since American troops have been in Britain, more than 21 million
V-mail letters from the United States to American soldiers have been
handled. All the cost is paid by Britain.

Training and Education
USAAF personnel are attending various courses organized by the
RAF side by side with RAF personnel. By the end of June, 1943, over
3,000 American airmen had completed RAF courses ranging in dura-
tion from four days to ten weeks, and covering a very wide variety
of subjects. Members of the U. S. Navy receive training in anti-
submarine warfare at British bases, and officers and enlisted men
and Merchant Marine gunners attend instructional courses in gunnery
and other subjects organized by the British Navy. American soldiers
attend courses of instruction at nearly all the British schools of in-
struction, including the Staff College. Copies of all training movies
made by the British Army are made available to the U. S. Forces.
Educational facilities provided by the British go beyond training
for immediate war purposes. The services of the Central Ad'isory
Council for Adult Education in the British Forces have been placed
at the disposal of tile U. S. Forces. This organization provides civilian
lecturers and teachers, paid from British Army funds. Correspond-
ence courses organized for British soldiers are available to members
of the American Forces. The British Army has also organized a few
joint Anglo-American courses, designed to give ollicers and men of
each nation a chance of learning something of the other's history,
geography and way of life.
The short University leave courses, originally started at Oxford
for Canadian officers and men, have since been extended to American
officers and men. One-week courses are being given the year round at
Balliol College. Membership of the class usually consists of 30 Amer-
icass and 30 Canadians (half officers, half enlisted men) and 15
British. Oxford's most distinguished professors give the lectures.
The men live in the college during the week, and, in addition to classes,
expeditions to nearby towns (such as Stratford-on-Avon). tours of
, Oxford and theater parties are included, and invitations to private

homes are arranged. The whole cost of the week's course to the stu-
dents is about $14 for officers andl $6 for enlisted men. Cambridge,
London. St. Andrews. Birmingham. Bt istol1, Glasgow, Edinburgh and
Reading Universities run similar courses.

Raw Mlaterials
Until recently, raw materials. ard foodstuffs in bulk (as distinct
from rations for the U. S. Fo, races) were not included in British aid,
since the d..llar receipts for these items were needed to. meet the heavy
cost of Britain's pre-Lend-Lease contracts, to:talling Iwith other Brit-
isli w:ar-time purchases up to April, 194-3). some six billion dollars.
Now that these co-ntracts have been largely fulfilled, the United States
Government will receive rawi materials and foods, and shipping
services for their transport, under Mutual Aid, the entire cost being
met by the British Government. In this way. Britain will make avail-
able to: the United States, without Iaymcnt, such materials and foods
as rubl.er from Ceylon. Trinidad. British Guiana and British Hon-
duras, sisal and pyrethrum from Brnitish East Africa, asbestos and
chrome roim Southern Rho.desia. coo'a from British West Africa,
tea and coconut oil from Ceylon, alnd benizol and tar acids from the
United Kingdom.

British Inventions
Long before Pearl Hat br,. Britain was freely giving to the United
States the results of research nild ex':eriment by her scientists.
Radiol:cation t" radar" anti the jet-lpropel'.ld fighter plane are famil-
iar examples. On Januaryv 1, 942, Britain and the United States
entered into a Patent Interchange Agreement under which there has
been a free 11,.w of llatent rights, anrd American war plants have
re:ciivtd. al.,sollutely free, patented andl unpatented ideas of real value
to the prosecution of the war. Similarly. British war plants have
receive, free licenses to utilize American-ov.ned patents. In a ijint
press release dated January 4, 1944, the United States Army and
Ny said that th they ad surveSed tlie results of this Agreement and
hal fulndI them "of great value in the war effort." Amo.ng the things
being manufactured on both sides of the Atlantic under the Agree-
ment aire: a kite. launched with a rocket-pistol. for use in carrying an
aerial aloft to aid in sending out emergency distress signals; air
complressors, range finders, illuminated gun sights, turrets, fuses.
incendiary bombs, airborne lifeboats, lathes, bomb releases, catalysts
(the agents which speed up chemical changes). torpedoes, condenser
tubes. warship propellers, periscopes, bearings and lacquers. Many
products are on the secret or confidential list and may not be pub-
licized.
D. MUTUAL AID IN NORTH AFRICA
In no. field of war was Mutual Aid more strikingly illustrated than
in the Niorth African landing by the United: Natio-ns Forces in Novem-
ber, 1'42. In his report on Lend-Lease operations from March 11,
1941,. to December 31, 1942, Edward R. Stettinius, Jr.. Lend-Lease
Adminititrat.or, gave the facts as follows:
"This ncti.on has been from the I.eginning a combined
operati:lon in which Lend-Lease and Reciprocal Aid have played
their part. Great Britain provided tw\\-thirds of the warships-
10

were equally divided. Of the landing craft employed most were
American-built. Some had been Lend-Leased to Britain and
were manned by British crews. U. S. Fighter Squadrons. on
the other hand flew 160 Spitfires provided by Great Britain
under Reciprocal Aid. Most of the equipment used by U. S.
Forces came from American factories, but supplies Lend-
Leased by Britain to our Armed Forces included such items as
100 miles of portable airfield runways. more than 500,000
anti-tank mines and grenades. 130 reconnaissance boats, 4
complete 1,000-bed field hospitals, and medical supplies for
100,000 men. One United States division was completely
equipped with British 25-pounder (guns.'"
Major Spiegelberg, Recorder of the General Purcha-ing Board in
the European theater, in his testimony before the House Foreign
Affairs Committee on February 2. 1943. added that the U. S. Forces
in North Africa received also as British aid more than 3,800 tons of
ammunition. 80,000 tons of coal, more than 2,000 tons of British
rations and 30.000 tons of engineering equipment.
During the North African operations, a considerable amount of
repair work to United State.s warships was carried out at Gibraltar.
British aid has also sent large supplies to North Africa to meet
civilian requirements. By August 1943, Britain had sent more than
300,000 tons of supplies, including over 277.000 tons of coal.

E. BRITISH AID TO THE SOVIET UNION
Britain has furnished war material to the Soviet Union free of
charge since that nation became engaged in the war with Germany.
By the end of May, 1943. 4,690 complete aircraft had been dispatched
from Britain, with appropriate supplies of spares, including engines,
airframes and other articles of equipment. By the end of June, 19 13.
the cost of this aid had totalled over 700 million dollars. By the end
of 1942, Britain had sent to the Soviet Union more planes than she
herself had received under Lend-Lease from the United States. She
had also sent 3.000 tanks and 70,000.000 rounds of ammunition. The
pooling of resources is also well illustrated by the shipping of these
goods to the Soviet Union. Whether planes, tanks or food supplies
originate in Britain or in the United States. they are carried to the
Soviet Union in joint convoys which face the desperate hazards of
Arctic seas,.enemy submarines, aircraft and surface craft. A great
proportion of the merchant ships and of the escorting vessels have
been British. In addition. Britain, at heavy cost, opened up the other
main supply route to the Soviet Union, through Iran, since further
developed by the United States under Lend-Lease.

F. BRITISH AID TO CHINA
Arms, munitions and military equipment are being supplied free
by the British to the Chinese Forces in China so far as the facilities
for transport from India will allow. Chinese troops in India are

largely equipped by the United States, but Britain supplies them with
everything .-supplied to British troops, such as rations, local currency
for pay and allowances, quarters, transport, hospital services, medical
and ordnance supplies and equipment. Anglo-Iranian oil has been
provided free in India and sent into China to the Chinese Air Force.
Britain provides training in India for Chine-e pilots. Other projects
which ha.e been financed by British Lend-Lease include the construe-
tion by Chinese labor of strategic roads in Northern India.

G. BRITAIN'S AID TO OTHER MEMBERS OF THE
UNITED NATIONS
The arrangements whereby Britain gives aid to other members
of the UnitLd Nations vary according to the needs and resources of
the nation concer.ied. Holland. Belgium. Norway and Yugoslavia pay
for all they receive. Certain other nations are given assistance in the
form of credits, but the bulk of military supplies are made available
free; iil this way supplies are given to Greece, Czechoslovakia and the
French Committee of National Liberation, and similar arrangements
have been offered to Poland and Yugoslavia. Military supplies are
also given to Turkey free of cost.

H. SOME FIGURES ON BRITISH AID
The Figures from the British Report
The British "Report on Mutual Aid" gave some partial figures on
Britain's Lend-Lease aid to her Allies up to the end of June. 1943.
The figures, given in pounds, are converted below at the rate of $4 to
the pound:
To the Unitcd States
Capital Installations in Britain-
$ millions
Barracks, hospitals, etc........... 124
Airports ....................... 220
Aircraft repair depots, etc......... 20
O others ......................... 4

368
The total program for capital installations will cost more than six
hundred million dollars when completed.
Goods and Scrciccs Tranfferrcd in Britain-
$ millions
Military stores, including equipment
and clothing .................. 84
Food and other Army supplies. ... 40
Aircraft and aeronautical equipment 80
Industrial and naval supplies. ...... 52
Miscellaneous services ........... 72

716
To Other Allics
Britain's credits to her Allies, other than the United States and
the Soviet Union, up to the endl of 1942, together with Lend-Lease
assistance by that date, amounted to about 744 million dollars.
Britain is currently devoting 10'% of her total war expenditure to
Mutual Aid. She is giving to the United States (in relation to her
national income) not much less than the United States (in relation
to its national income) is giving to Britain in the form of Lend-Lease.

The Figures Don't Tell the Whole Story
These figures, however, do not tell the whole story for three main
reasons:
First. they do not include the raw materials and foodstuffs trans-
ferred to the United States.'
Second, the cash figures given represent the cost to Britain con-
verted at the present rate of exchange. The cost in dollars to Britain,
however, is considerably less than the dollar value which would have
to be put upon these items in United States Lend-Lease accounts.
Wage levels and the cost of war goods in the two countries are very
different. Unless this is taken into account, the British contribution
is underestimated, perhaps by as much as one-half or more.
Third, the figures given above do not. by any means, cover all
British aid, even apart from raw materials and foodstuffs. When new
buildings are erected, or a specific quantity of supplies procured and
handed over, Britain can calculate the cost, though even in such cases
the extreme shortage of manpower makes accounting difficult. But
iften the British depot issuing supplies to the United States Forces
may be thousands of miles from headquarters, so that any records
Would take months to arrive in Britain for accounting. Detailed ac-
counting over the whole field of British aid to United States would
require several thousand clerks and accountants-which, at this stage
of the war, would be a gross waste of manpower. In this way, British
aid to the United States differs from American Lend-Lease aid to
Britain, which all goes through a central source with a regular system
Srequisitioning, so that detailed accounts can be kept. This difficulty
i particularly acute in the case of transfers made in the field of battle.
loutb. will pass before any estimate can be made of maior items-
tCh s tanks-transferred in Tunisia, Sicily, Italy and other theaters
See p. 10.
13
l iiiii i1

of war. Nolle ot tie goo0s anu services trasierlret in overseas rne-
aters of iwar are included in the above figures.
Mutual Aid and Britain's Financial Effort
Britain's part in Mutual Aid is only one aspect of her total finan-
cial effort. By April, 1943. she had spent in the United States alone
more than six billion dollars on supplies, munitions and the provision
of capital equipment for the prosecution of the war. and in order|
to pay for these supplies, so vitally needed for her fight against the
Axis, she seriously depleted her gold holdings and her American in-
vestments. At the same time, her debts to other nations have been
mounting very rapidly. In all, her payments to members of the United
Nations in excess of the sums received from them total more than nine
billion dollars. This heavy financial burden is part of the price that
Britain is paying to ensure the defeat of the Axis. It is for her an
additional contribution to the pooling of resources.

I. THE COMMON STRUGGLE
The amount of Mutual Aid which a nation gives is. of course, by
no means, a coml:llete measure of its wvar effort. Some of the United
Nations-such as Russia and China-are so close to the enemy. or
have such small resources compared to their needs, that the whole of
their \war effort is applied directly. Others, further off, or with more
resources, can best help the common cause by putting part of their
production into the common pool.
It i. the over-all strategy which determines how much should be
transferred among the United Nations, just as the strategic plan
demands unified leadership and a common effort in the battlefield. If
the plan calls for bombers to be Lend-Leased by Britain to the Soviet
Union, this contribution by Britain to tlhe common cause is not more
important than Britain's own bombing of Germany's war centers.
Taking a wider view. the mnot crucial contribution by each of
the United Nations to the common cause has been of a kind to which
no cash value can ever be attached. Russia's victory at Stalingrad,
the endurance of the British people in the hard year of 194u-41, the
costly American victory at Tarawa, the long magnificent tight of the
Chinese-these are contributions to the common pool which can never
b:e valued in terms of dollars or pounds. As \Ir. Stettinius said in
his Report to Congress on Lend-Lease Operations from the Passage
of the Act. March 11, 19.11, to December 31, 1942:
"There is no standard of values by which the loss of a
thousand Russian lives, for instance, can be compared with a
thousand fighter planes. Those who have died fighting in
Britain. in China and in Russia, in Africa and in Asia, died
in defense of their oIwn countries. But these people have fought
and they fight now against enemies that are ours as well as
theirs. Their sacrifices are saving American lives. China's
five-year struggle against Japan. the terrible toll taken of the
Nazis by the Red Army, the defense of Britain and the destruc-
tion of German production centers by England's RAF, and the
protection of vital sea lanes by the British Navy-all have
combined to Jave the United States from invasion, to preserve
to us the means of victory and to speed its coming."
14

The undersigned, b:ing duly authorized by their respective Governments for
that purpose, have agreiLd as follows:-

ARTICLE 1.
The Government of the United States of America will continue to supply the
Government of the United Kingdom with such defence articles, defence services,
and defence information as the President shall authorise to be transferred or
provided.

ARTICLE 2.
The Government of the United Kingdom v.ill continue to contribute to the
defence of the United States of America and the strengthening thereof, and will
provide such articles, services, facilities or information as it may be in a position
to supply.

ARTICLE 3.
The Government of the United Kingdom will not, without th: consent of the
president of the United States of Anteiica, transfer title to, or possession of, any
fence article or defence information transferred to it under the Act, or permit
|te use thereof by anyone not an officer, employee or agent of the Governrnmnt of
ile United Kingdom.

ARTICLE 4.
If, as a result of the transfer to the Government of the United Kingdom of
y defence article or defence information, it becomes necessary for that Govern-
it f take any action or make any payment in order fully to protect any of the
its of a citizen of the United States of America who has patent rights in and

d. 6391. Copies may be obtained from British Information Services, price 54.

L1 ii Ti u*ti IC II Ulfelll-H :1L uL UI IU l I I tIILuLLti0 | LiL 'IJLI' llV II ILLILL Li i LEIC U lItILu i IiL UU111
will tal:, such acti..It. or make -:uUh piy:'nint wv.ihn rcLqusted to do so by the Presi-1
dent of tlh United States of America.

ARTICLE 5.
The IC..vei mrinr .-:.f the United Kinedom will irturn to the Urnitd Stlats of
Amn-i icei at the- end c-t tihe lpresent ieli' geiicy, '- detercnined b. the Pie'sident. such
defence iticles trri:nferfi d under thi. Agi.re'lie ntil .- shall not have b.-en destroyed,
lost or consumed, and as shall be d.teirminied by the Pie.:ident to hrbe useful in the
detf-nce of tli United State if Animrica ti of the Western Hemisphere or to be
uth.i ;i.isi. of use t.. tht United Statre of America.

ARTICLE 6.
In the final determination of the benefits to be provided to the United States
of America by, the Government of the United Kingdom, full cogni.iance shall be
taken of all property, services, information. facilities or other benefits or consid-
.rati,'un providild by the Govlrnm:nt of the United Kingdom subsequent to the
llth March, 1941, and accepted or acknowledged by the President on behalf of the
United Stater oif America.

ARTICLE 7.
In the final determination of the benefits to be provided to the United States
of America b.: the Go\-rnment of the United Kingdom in return for aid furnished,
undr th, Act rof Cungr.ss of the llth March, 1941, the terms and conditions
thereof -hall be such as not to burden commerce between the two countries, but
to promote mutually advantage.:.us ecoinomnic relations between them and the
betterment of world-wide economic relations. To that end, they shall include
provision for careed action by the United State5 of America and the United
Kingdoiii open to participation by all other countries of like mind, directed to the
expansion by appropriate international and domestic imesures, of production,
eniploynrient, and th, exchange and cmonsutnption of goods, which are the material
foundations of the libcrt3 and welfare of all peoples: to the elimination of all
forn, of disc iminatory treatment in international commerce, and to the reduction
tf taiitfI- aid other trade barriers; and. in general, to the attainment of all the
economic objectives set forth in the Joint Declaration made on the 14th August,
1941. by the President of the United States of America and the Prime Minister
of the United Kingdom.
At an early convenient date conv-.erations shall be begun between the two
Governments with a view to determining, in the light of governing economic
condirins-, th, best means of attainin the above-stated objectives by their own
agreed action and of seeking the agreed action of other like-minded Governments.

ARTICLE S.
This Agreement shall take e-ffect as from this day's date. It shall continue in
force until a date to be agreed upon by the two Governments.
Signed and sealed at Washington in duplicate this 23rd day of February,

For the Government of the United Kingdom of
Great Britain and Northern Ireland:
IL.S.) HALIFAX.
Hi.? Alareity's Am.-bassador E.xtraordinary and
Plciicpotiitiary at IWashinagtoi.

For the Government of the United States of America:
(L.S.) SUMNER WELLES.
Actii;g Secretary of State of the United
State of America.

J i LEuI UiILLU INitIlns L' teciir:aln n o01 ne ist jI nuir y. 1-J*4.. mne LoUIIl'ICL-
ing Governments pledged themselves to employ their full resources, military or
economic. against those nations with w\luch they are at war, and in the Agreement
of the 2::rd February, 1942, each ContractineL Government undertook to provide
the other with such articles, services, facilities or information, useful in the
prosecution of their common war undertaking. as each may be in a position to
supply. It is further the understanding of the Government of the United Kingdom
of Great Britain and Northern Ireland that the general principle to be followed
in providing mutual aid as set forth in the said Agreement of the 2.rd February,
1942, is that the war production and the war resources of both Nations should
be used by the armed forces of each. and of the other United Nations, in ways
which most effectively utilise the available materials, manpower. production
facilities and shipping space.
With a viev.'. therefore, to supplementing Article 2 and Article 6 of the
Agreement of the 23rd February, 1942, between our two Governments for the
provision of reciprocal aid. I have the honour to set forth below the understanding
of the Government of the United Kingdom of Great Britain and Northern Ireland
of the principles and procedures applicable to the provision of aid by the Govern-
ment of the United Kingdom of Great Britain and Northern Ireland to the armed
forces of the United States and the manner in which such aid will be correlated
with the maintenance of those forces by the United States Government.
1. While each Government retains the right of final decision, in the light of
its own potentialities and responsibilities, decisions as to the most effective use of
resources shall, so far as possible, be made in common, pursuant to common plans
for winning the war.
2. As to financing the provision of such aid, within the fields mentioned
below, it is the understanding of the Government of the United Kingdom of Great
Britain and Northern Ireland that the general principle to be applied, to the point
at which the common war effort is most effective, is that as large a portion as
possible of the articles and services which each Government may authorise to be
provided to the other shall be, in the form of reciprocal aid so that the need of each
Government for the currency of the other may be reduced to a minimum. It is
accordingly the understanding of the Government of the Unitmd Kingdom of Great
Britain and Northern Ireland that the United States. Goveinnent will provide, in
accordance with the provisions of, aAd to the e:-tent authorised under, the Act of
the 11th March, 19-1, the share of its war production made available to the
United Kingdom. The Government of the United Kingdom will provide, on the
same terms and as reciprocal aid so much of its war production made available
lto the United States as it authorises in accordance with the Agreement of the
23rd February, 1942.
i 3. The Government of the United Kingdom will provide the United States
,r its armed forces with the following types of assistance, as such reciprocal aid,
When it is found that they can most effectively be procured in the United Kingdom
it in the British Colonial Empire:-
(a) Military equipment, munitions and military and naval stores.
(b) Other supplies, materials, facilities and services for the United States
forces. except for the pay and allowances of such forces, administra-
tive expenses, and such local purchases as its official establishments
may make other than through the official establishments of the Gov-
ernment of the United Kingdom as specified in paragraph 4.
(c) Supplies, materials and services needed in the construction of military
projects, tasks and similar capital works required for the common
Swar effort in the United Kingdom or in the British Colonial Empire,
except for the wages and salaries of United States citizens.

6389. Copies may be obtained from British Information Services, price 50.

17

... ....

Colonial Empire is a more practicable source of supply than the
United State. or another of the United Nations.
4. The practical application of the principles formulated in this note, include.
ing the pr'ojedure by which requests for aid by either Government are made and
act.i ulpon. shall be worked out as occasion may require by agreement between
the t..o ; ri.,:.ruiLnts, acting when possible through their appropriate military
or ci-.ili ii iN .-,i-t i iti'.-c anthriitiLs. Rr-quests by the United States Governmennt
for sclici .-.i.i .11 b.- pl t~iited by duly authorized authorities of the United State.
to utliciil agr-niie .of the United Kingdom which -ill be designated or established
in L.-.Jin -jnd iti the :.-res where United States forces .arc located for the purpose
of f.icilitating the provision of reciprocal aid.
5. It is the understanding of the Government of the United Kingdom ofi
Great Biitain and North-itli Ireland that all such aid. as well as other aid,
inciudirn, information, received under Article A of the Agreement of the 23rd
F,-Lbruiary, 1942, accepted by the President of the United States or his authorized.
representatives, from the Government of the United Kingdom will be received as a
benecni to the United St:ttes under the Act of the llth IMrch, 19-11. In so far as
circumstances will permit, appropriate record of aid received under this arrange-
nent, c-:cept for miscellaneous facilities and services, will be kept by each
Govi rnment.
If the Government of the United States concurs in the foregoing. I would
suggest that the present note and your reply to that effect he regarded as placing
on record the understanding of our tv:o Governments in this matter.
I have. &c.
HALIFAX.

Mr. Cordell Hill to Viscount Halifax.
I Washingtrn. September 3, 1942.
I HAVE the honour to naclnowledge the receipt of your note of to-day's date
conci-rning the principles and procedures applicable to the provision of aid by
the Government of the United Kingdom of Great Britain and Northern Ireland to
the armed forces of the United States of America.
In reply I wish to inform yuu that the Government of the United States acreer':
with the und,-rstanding of the Government of the United Kingdom of Great
Britain and Northern Ireland as expressed in that note. In accordance with the-
suc-gestion contained therein, your note and this reply will be regarded as placing-
on record the understanding between our two Govtrnments in this matter.
This further integration and strengthening of our common war effort gives.
me great -satisfaction. i
Accept. &c.
CORDELL HULL.

is4

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